Reliance
Retail has reported entered into arrangements with Diageo,
UB Group and Champagne Indage. other retailers like
Shoprite and Future Group are also being approached
by wine makers for similar pacts.
Industry players say a tie-up with big retailers will
not only strengthen distribution network but also help
in expanding the market by creating awareness of wine
culture.
"By tying up with retail players we not only increase
visibility of products but it will also help in creating
awareness about wine-drinking in the country,"
Champagne Indage managing director Ranjit Chougule said.
He said in traditional wine shops, the average space
given to wine segment is about 5-10 per cent and that
too is shared between five to six players.
Echoing similar views, Diageo India managing director
Asif Adil said: "Tie-up with retail players will
give better results as it will synergies strengths of
the two sectors."
Diageo-Radico chief executive Raju Vaziraney said the
biggest advantage of selling wine through retail players
is that it would help in getting proper display of products.
He, however, said there would not be a major increase
in revenues from selling wine through organised retail.
Moreover, wine makers are not yet replacing their existing
distribution networks.
"Retail chains will give us the added advantage
but will not act as alternative to the present selling
pattern in the country," Vaziraney said.
http://economictimes.indiatimes.com
DelWine differs with Vaziraney. There is a huge
latent demand that is pent up and waiting to be satisfied.
Supermarkets are just the vehicle due to proper storage
display, sales promotion and pricing due to volumes.
The irony is that imported wines would benefit
more from this step as the Indian wines were generally
available more easily anyway , though given a choice
anyone would prefer the purchase from the supermarket.
To that extent, the existing sales channels will
be hit badly. But overall, there will be a big boost-unless
Maharashtra government continues to play the role of
being the consumer’s khalnayak and decides to
limit the sale of only Indian wines- or playing into
the hands of the state producers, only Maharashtra wines
-editor.
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